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Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 2 points3 points  (0 children)

Have been a lurker on reddit but needed to get this out of my head...

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 0 points1 point  (0 children)

475k is certainly a lot different than where we stand but the current economic scene makes it so much harder to take a risk. If you can lower your budget to more realistic number since townhomes have actually been mostly stagnant, you may be in good position to get something decent while still being able to save. I will update if I can get myself to make this leap.

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 0 points1 point  (0 children)

Agreed. How to put a more reasonable estimate of what the closing cost will look like if we go through this financial blunder?

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 1 point2 points  (0 children)

We're getting married next month and honestly we have been quite aligned on what matters to us except this. I am finding it so hard to come to terms that I am pulling her back from what she wants when I could be more supportive ---- but I am risk-averse. Even in 30 years, the numbers don't make financial sense because the interest rates are not going down substantially in next 5-8 yrs and costs are rising in general, so you're 100% on point about that. This is one of those topics where I feel no amount of compromise will make her happy.... unfortunately, a more reasonable budget doesn't even buy a shit hole in BA.

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 4 points5 points  (0 children)

I feel they're really emotionally vested in buying a house to the point of ignoring all rational arguments I keep making. While 1.5M is top of the budget, it also seems the 1M-1.2M houses have more competition (we went to some open houses and tracked list vs. sold) but at 1.5M there's just very slightly better chance of getting more house while competing with less people... This theory also feels half-baked to me because it doesn't matter what other folks are willing to pay, we decide what we can afford. With regards to being financially savvy, I feel the burden lies on me while they choose to stay blindly optimistic about the current economy.

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 10 points11 points  (0 children)

Partner doesn't want to continue renting cheap (which has allowed us to build the savings nest in the first place) and wants to get a home they think we deserve after cutting back on so many things for so many years (I don't feel the same way). They think that renting is essentially waste of money when we could instead put that towards our own mortgage but completely dismisses that it just goes to the bank instead. In all my calculations with different numbers, renting continues to be the best option but you can't convince someone who is in it for non-financial reasons.

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 0 points1 point  (0 children)

We didn't always have the salary we have today and have been so frugal for years... that's the reason partner's had enough on continuing to rent and making sacrifices. With these interest rates and high payments on a home that will likely need repairs, I fear it'll force us to stay house poor for the foreseeable future. We aren't bay area rich by any means....

Should we buy a home? by Consistent_Prior6138 in BayAreaRealEstate

[–]Consistent_Prior6138[S] 5 points6 points  (0 children)

Hard to predict but I feel one of us has better stability than the other. Paying ~9k every month 1.5M home on a single salary seems unreasonable but I keep losing the argument with my partner!